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For Healthcare: Use the Private Sector Model, As With Crop Insurance

PIA of North Dakota is out with a commentary this week that advocates for private sector delivery of health insurance through the insurance exchanges ...
June 22, 2011

PIA of North Dakota is out with a commentary this week that advocates for private sector delivery of health insurance through the insurance exchanges - utilizing the successful model of private sector delivery of crop insurance. Here's PIA of North Dakota's take:

MAYBE THERE IS HOPE? The U.S. Department of Health and Human Services (HHS) is trying to get more people to enroll in the PCIP (Pre-existing Condition Insurance Plan) by lowering premiums and (believe it or not) paying agents an enrollment commission. This is all part of the Obamacare program for which historically HHS and the NAIC do not see value in professional, independent agents explaining coverage, options, costs and enrollment and application procedures. Several states have experimented with using agents with good success. All that HHS and NAIC have to do is look at the Federal Crop Insurance model which has enjoyed huge success due to private contractors called agents! For over 35 years, the Federal Crop Insurance program stumbled along with no growth, no new products and no incentive for farmers to buy a policy until the private sector companies and agents came along in 1981. HHS has a model before them if they can only recognize it!

Good points. We should also note that the success of using agents to deliver crop insurance is now under attack by a federal employees union that wants to replace agents - and go back to the pre-1981 days of inefficient administration by the federal government.

Read PIA National's article on the HHS pre-existing conditions program: HHS Offers Agents Commissions in Pre-Existing Condition Program

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